Quick Answer. A limited government is a constitutional government with limited power and checks and balances in place whereas an unlimited government is an authoritarian and totalitarian government. The United States is an example of a limited government. Continue Reading
According to IAS 27, Subsidiary is defined as an entity over which the parent exerts control, i.e. the power to govern the financial and operating matters and to obtain benefits from its activities. In order to do this, the parent has to acquire a percentage of ownership exceeding 50% in the holding company.
âDirectors beware â unless you are careful to maintain a subsidiaryâs independence, the parent company may be liable for the debts of its subsidiary.That is the effect of a recent High Court decision invoking a rarely used provision in the Companies Act. We analyse the judgment and draw some practical advice from it.he Court acknowledged that it is common practice for a parent company to be involved in the management of its subsidiary, including appointing high-level managers to the subsidiaryâs board. However, in this case, the level of involvement had been so large as to compromise the subsidiaryâs independence.